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I've always wondered how investors allowed that to happen. They collude in every other matter, why not this one? FB needed investment to survive, so one of th
by sillysaurus2 13y ago
I've always wondered how investors allowed that to happen. They collude in every other matter, why not this one? FB needed investment to survive, so one of the terms could've been "give up your power."
- cylinder 13y agoFB was too popular at IPO, they could do whatever they wanted. Activists only get involved when shares underperform. Otherwise, they have no leverage. Shareholders only care about the stock price and nothing else.
- waps 13y agoI don't understand that at all. Suppose the shareholders' dreams happen and Facebook starts earning enough to make dividend payments that repay the value of the stock in, say, 10 years. What's to stop Zuckerberg from just directly diluting every other shareholder ? (and of course, that's exactly what probably happens right now, because Zuckerberg gets more stock options yearly than anyone else, so his voting power does not dilute over time) Please don't see this as an attack on Facebook. It's hardly alone in doing this. And I do agree that Zuckerberg is probably a lot more qualified to run Facebook than any (set of) investors. Still, why take the risk that he might "cheat" ? Why are these shares selling ?